BUSINESS UNIT HEADER IMAGE GOES HERE 2015 First Quarter Financial & Strategic Update Al Monaco President & CEO John Whelen Executive Vice President & CFO Guy Jarvis President Liquids Pipelines
Agenda First Quarter Highlights Financial Review Business Update - Supporting customers in volatile commodity price environment - Progress on execution of capital program Outlook 3
Financial Highlights Adjusted Earnings* (millions) Q2 - Q4 growth drivers - Liquids throughput 2.35/share - Mainline tolls - 9B in new projects in-service 2.05/share 1.90/share 2015 Outlook - On track to achieve guidance range -…
Financial Highlights 2015 Dividend Increase 33% DPS increase in 2015; long history of significant dividend growth 2.00 1.86 1.50 Dividend per Share 1.00 0.50 - 2009 2010 2011 2012 2013 2014 2015 5
Financial Highlights Optimization Update Optimization value added for ENB and ENF shareholders ENB ENF Accelerate DPS/EPS Canadian growth EIF LP assets Value Legacy Assets Enhance funding cost competitiveness Transform EIF/ENF…
Financial Highlights Financial Strategy Optimization Restructuring on track to close mid-2015 10% ENB EPS uplift Reiterated Revised Payout Policy Expected Timing 10% ENF DPS CAGR and Benefits Dec 3rd Independent Special March…
2015 Segmented Adjusted Earnings* Variance Millions SEGMENT Q1 2014 Adjusted Earnings* 492 Liquids Pipelines (26) Gas Distribution +3 Gas Pipelines, Processing and Energy Services (18) Sponsored Investments +43 Corporate (26)…
2015e Adjusted EPS* Guidance Outlook Reliable business model intact; Reiterating 2015 guidance Headwinds Line 9 Aux Sable 2.35 Energy Services 2.05 Tailwinds FX Interest Rates Cost Management 2015 Guidance Range *Adjusted…
Enterprise Wide Liquidity Billions (nominal) 20 18 Cash Cash 15 Unutilized 8 Billion Capacity Available 10 Facility 5 Facility Usage1 Facility Usage1 Usage1 0 March 31, 2015 1 Includes credit facility draws and…
Updated Funding Plan (2014-2018)* Financing requirements remain very manageable Billions Maintenance & Integrity Capital 5.2 Secured Growth Capital 23.5 Risked Growth Capital 9.1 37.8 Cash Flow Net of Dividends (13.7) Net Funding…
Free Cash Flow1 Strong free cash flow1 growth and dividend coverage Free Cash Flow Per Share1,2 Growth 2015e Dividend Coverage4 Peers Enbridge Maintenance and Integrity Capital3 Spending Low High 2 Relative Dividend…
Maximizing Value for Customers Competitive tolls, system optimization and new market access adds value for our customers Stable, Competitive Tolls Market Access Initiatives IJT Benchmark Toll** 2011 3.85 2012 3.94 2013 3.98 2014…
Strong Demand for Mainline Capacity WCSB fundamentals remain strong and continue to support growth on our Mainline WCSB Crude Oil Production Outlook* Quarterly Throughput ex-Gretna 3.0 7,000 6,000 2.5 5,000 2.0 MMbpd…
Business Update Project Execution Major projects expertise delivers value through on time and on budget execution Major Projects Executed1 Supply chain management Value engineering process 2014 Q1 Capital competitiveness team 8B…
Regional Oilsands Optimization Improves capital efficiency, mitigates throughput risk and lowers tolls for shippers Before Optimization After Optimization 3.0B* 2.6B Expansion from 30 to 36 Expansion to 800kbpd Wood…
Low Cost System Expansion and Extension Opportunities Low cost phased expansions are attractive in a low price environment Market Access Opportunities kbpd 1 Eastern Gulf Coast Access 350+ 2 Flanagan South / Seaway Expansions 200 3 Line…
Project Execution Edmonton to Hardisty Balances system upstream of Hardisty; supports expansion and market access programs 36 180 km Pipeline Total Secured Capital = - Edmonton to Hardisty 1.8 B - Initial capacity 570 kbpd,…
Project Execution Sandpiper Stakeholder support for Sandpiper Project in Minnesota North Dakota approval Total Secured Capital = received June 2014 2.6 B ALJ recommends Certificate of Need permit for approval by Minnesota Public…
Project Execution Line 3 Replacement Project Increases system reliability and flexibility Status: - NEB application deemed complete - CAEPLA support - Minnesota application filed April 2015 - Land acquisition is at 97% in…
Project Execution Line 9B Total Cost = Reversal and expansion to 0.7B 300kbpd Status: - Mechanically complete Oct 15, 2014 - NEB approved condition filings Feb 6, 2015 - Leave to Open filed Feb 6, 2015 Expected in service Q2…
Project Execution GTA Project Increases capacity and reliability in the GTA and downtown Toronto Provides additional supply and basin optionality Construction underway In service = Q4 2015 Total Cost = 0.8B 22
Growth Capital Program* Billions 34B commercially secured by in service date 44 2014 9.8 Risked unsecured 10 2015 8.7 2016 0.9 2017 14.2 In service 2018 0.4 In execution 20% Illustrative Return Profiles Commercially…
Adjusted EPS* Growth Outlook Drop down accretion adds 10% to EPS from 2015 through 2018 - Highly transparent outlook Extending ENF funding beyond 2018 reinforces other sources of post 2018 growth Tilted Return Projects Natural…
DPS Growth Outlook Drop down accretion and revised payout policy provide 33% increase in 2015, 14%-16% expected growth for 2015 through 2018 Extended ENF funding beyond 2018 reinforces other sources of post 2018 growth 1.86…
Summary Q1 adjusted earnings in line with expectations (0.56/share) On track to be within 2015 guidance range (2.05 2.35/share) Robust mainline volume outlook Execution of capital program progressing well Industry leading EPS and…
BUSINESS UNIT HEADER IMAGE GOES HERE Question & Answer Period
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